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Episode Date: February 1, 2025

Today is February First. The day US President Donald threatened to impose sweeping 25 percent tariffs on all Canadian goods. The implications for Canada's economy are huge, and we know many of our listeners are following this story. So this evening, we have invited our colleagues at the Your World Tonight Podcast to provide some additional context.Consider following them as a staple in your podcast diet. https://link.mgln.ai/USt9zY

Struggling with debt? Help is available. Discover reliable solutions to help you get back on track. Visit Canada.ca slash debt dash solutions for support you can trust. A message from the Government of Canada. This is a CBC podcast. Good evening. John Northcott here from World Report. Today is February 1st, a milestone date in the story of US President Donald Trump's threats to impose sweeping tariffs on all Canadian goods.

The implications for Canada's economy are huge and we want to make sure that you have the latest information. So we invited our colleagues at the Your World Tonight podcast into your feed. I'll let them take it from here. Hi, I'm Stephanie Scanderis. This is Your World Tonight. U.S. President Donald Trump upends decades of free trade in North America, slapping heavy tariffs on goods

from Canada and Mexico, which will take effect Tuesday. On the podcast, we'll tell you what industries are affected and how our government says it'll fight back. Plus, we'll hear from people across Canada who are anxious about what these tariffs could mean for the cost of living and their jobs. US President Donald Trump has fired the first shot in a trade war. The White House says tariffs will be hitting Canada and Mexico starting Tuesday. On that day, most Canadian exports to the US will face a 25% tariff, with a 10% levy on oil and gas. We will have full coverage on this story

including reaction from here in Canada but we begin with Chris Reyes in New York. So Chris, Donald Trump's executive order is out. What does it say? Yeah, lengthy fact sheet from the White House today Stephanie. So we know that President Donald Trump has been at Mar-a-Lago in Florida all day. He's been golfing. We've been waiting for this all day. And it came out around 5 p.m. Eastern in the form of a statement. So no comments yet directly from the president. And unlike the other executive orders, he didn't sign them on camera.

So here's what we know. As we've been reporting, it will be a 25 percent tariff on all imports from Canada and Mexico and 10 percent on China. And energy resources from Canada will have a lower 10% tariff. Canada, worth noting, is the biggest supplier of oil and gas to the United States. The legal tool that Trump is using to impose these tariffs is what's known as the IEEPA, or the International Emergency Economic Powers Act, which gives the president wide-ranging powers to make this move.

The White House cites the crisis at the border as the reason for this national emergency, citing migrants and drugs coming into the U.S. border as the main problems. Let me just read to you in part what it says about that. It says, the orders make clear that the flow of contraband drugs like fentanyl to the United States through illicit distribution networks has created a national emergency, including a public health crisis. And it adds that a recent study recognized Canada's heightened domestic production of fentanyl and its growing footprint with international narcotics distribution as, again, one of the

reasons for this tariff. And then it goes on to explain what we've heard directly from the president in previous comments that he loves tariffs. The statement says that tariffs are a powerful proven source of leverage for protecting national interest. President Trump is using the tools at hand and taking decisive action that puts American safety and our national security first.

And there's another clause as well, a threat really, should Canada choose to fight back? What can you tell us about that? Let's talk about this retaliation clause as well, a threat really, should Canada choose to fight back? What can you tell us about that? Let's talk about this retaliation clause because this is going to get a lot of people talking. It reads, should Canada retaliate against the United States in response to this action through import duties on United States exports to Canada or similar measures, the president may increase or expand in scope the duties imposed under this order to ensure the efficacy of this action." So this is just a long

winded way of saying that should Canada impose counter tariffs, which we know will happen, that the United States reserves the right to increase those those tariffs which now President Trump also said during remarks from the Oval Office last night. Okay and so Canada's left in this in this place of dealing with these tariffs until Trump is convinced that that this country's done enough to stop fentanyl from going over the border which we know is a really small amount and we don't know where that bar is or how to meet that bar. Chris, thank you so much. Exactly. Thank you.

The CBC's Chris Reyes in New York. So while Donald Trump says the tariffs are about fentanyl, Prime Minister Justin Trudeau says they're about sovereignty, that word from a First Minister's meeting late Saturday afternoon. Now we're expecting to hear more from the Prime Minister this evening but reaction is already coming in from other Canadian leaders. And as Rafi Boujikaneen reports, all are united in their condemnation of this coming surcharge on Canadian goods. We're laying down the strong foundation at the beginning of the mandate of President Trump. Foreign Affairs Minister Melanie Jolie trying to sound optimistic late yesterday at the conclusion of a trip to Washington, D.C.

A last ditch effort to prevent a trade war by appealing to officials of Donald Trump's administration. There's a level of unpredictability. But that war is now all but underway. Jolie saying Canada will have cards to play, a retaliatory tariffs counterpunch. First round of measures, second round of measures and third round of measures. With the country now waiting with bated breath on the exact nature of those measures. However, this government may only be around for so long to see them through. Prime Minister Justin Trudeau on his way out the door after March 9th when his Liberal Party votes in a new leader who will become Prime Minister.

And now we see this attack on our country by President Trump. A perceived frontrunner to replace him, former Bank of Canada Governor Mark Carney. It is a very serious situation. It demands serious leadership. Carney says he would fight back with dollar for dollar retaliatory tariffs. Same idea with his main rival for the job, former finance minister Chrystia Freeland, who is pointing to her previous experience

renegotiating NAFTA with Trump during his first presidency. The only thing that President Trump understands is strength. We have to demonstrate that now. Canada is a strong country. Hardly the only campaign getting defined by Trump's tariffs. In their looming threat, Ontario Premier Doug Ford saw political opportunity, launching his province into an election this week. We have to make sure the high grade nickel and many other critical minerals.

He needs to feel the pain. He met with his provincial and territorial counterparts this afternoon as well as with Trudeau. We're in a moment that is historic, existential threat to the country. Newfoundland and Labrador Premier Andrew Fury not mincing

his words about what's ahead. I believe this to be attack on Canadians and attack on their values, Newfoundland and Labrador premier Andrew Fury not mincing his words about what's ahead. I believe this to be an attack on Canadians and an attack on their values, an attack on our sovereignty. And it's a moment where we need to stand strong and united. That unity could be strained further than it's already been for weeks. Some premiers had warned against the fight over tariffs with an economic giant. Federal sources have now told CBC News Americans have told them any retaliation by Ottawa would be met with even steeper tariff hikes from Trump.

Rafi Boudjikani on CBC News, Ottawa. Conservative leader Pierre Polyev is also reacting to the tariffs. In a post on X, Polyev is urging the Liberals to bring back Parliament to pass what he calls a Canada First Plan. Among the many measures he suggests are dollar-for-dollar tariffs on certain U.S. goods, passing a tax cut onto Canadians, and knocking down trade barriers between provinces. Still ahead, a new draft bill in Quebec aimed at integrating newcomers rejects multiculturalism in favour of what it calls interculturalism. What does that mean and why is Quebec focused on it? That's coming up on Your World Tonight.

Okay, back now to tariffs and they will be a major hit for Canadian businesses that export to the US. So in order to stay afloat some business owners are exploring new markets. Philipp Lee Shanok reports on that. Jessica Miao's Toronto based bra company sends up to half of its products to the US. She's looking at ways to absorb the hit of a 25% tariff on Canadian exports. Our one way to defend against that through marketing is just making sure that we're highlighting

that our bras really are unique. And she's confident she can compete even at a higher price point. There is no one really in North America who are making bras that grow as girls grow, that last throughout puberty, so that American customers will still choose our bras. She's also looking at moving some operations south of the border. And then there's that sinking Canadian dollar.

It might offset any issues they have with paying an increased tariff. Uncertainty is the worst for businesses. For months, Canadian businesses have been preparing for unknowns about the timing, scope, duration and if there will be any exemptions to those U.S. tariffs. Julie White is with a group representing Quebec manufacturers and exporters. She says her members have been making plans and not waiting for details of the tariffs. We don't control what Donald Trump is doing, but we can control the business environment that we offer. White says some companies are looking at contingencies like suspending investments, finding new markets for their products or moving.

Some businesses are looking at producing more products in the U.S. Eventually it could lead to job losses around Quebec. No one wants that. No surprise but it's the wake-up call that you just don't want to get. Danny Dumoresque is president of Labrador Gem Seafoods. He says half of the company's snow crab and scallops are shipped to the U.S. and he says they're looking at markets in Ontario and further west. What by no means is there enough market in Canada to replace the American market. And

in my opinion, the best place to go is the European Union. Dumoresque already has meetings lined up with potential customers in Italy and Spain. He says the EU's 400 million people are ready market. To be able to replace the American market for snow crab for example I suggest it probably would take eight to ten years. And business groups say diversifying markets for Canadian goods just makes sense and not just during uncertain times. Philip LeChenock, CBC News, Toronto. Now as we've mentioned the coming tariff from the US is not going to be as heavy on oil and gas.

It's 10%. Sam Sampson is in Edmonton to discuss how this news is hitting Western Canada. Sam, what are we hearing from the oil and gas sector in response to these tariffs? Well the consensus is really it's better than 25 percent, but 10 percent still is not good. Either way, it's an extra tax. And so the short-term thinking is because the U.S. is virtually our only customer for oil, we have to sell to them. So perhaps that means lowering the cost per barrel, which might have an effect on production. But there is a little bit of wiggle room right now on the price per barrel. So the message I'm hearing is let's not panic.

It's a wait and see moment. The real concern for Peter Tertsakian is retaliatory tariffs. He's the president of Studio Energy, an energy industry firm, and was just appointed yesterday to the prime minister's Canada-US relations council. The last thing we want to do is get into some sort of tit-for-tat escalation because it will ultimately just boomerang back at us. But what I keep hearing as well from the sector is that there's this hope that right now this moment will spur action to change how we operate the energy industry as a whole. Now the argument is that if the US is now a tough customer

we should be building pipelines that can get Alberta's landlocked oil to international markets. Now, of course, that brings up an entire conversation about environmentalism, but that's the solution that many people are floating. So energy is, of course, a big, big piece of this, but it's not Alberta's only major industry. What about the agriculture sector? What are people saying there? Agriculture and food, that made up Alberta's second largest export to the United States, almost nine billion dollars in one year to the US alone. So while oil and gas are kind of breathing a sigh of relief, these other industries are

grappling with that 25 percent tariff. So that's just Alberta. Saskatchewan and Manitoba, of course, also heavily export to the United States. So it's causing a lot of uncertainty is the word we're going to hear over and over again. Andre Harp is the chair of Alberta Canola. So out in the West, he says these tariffs are hitting home right away. Even yesterday, I was actually delivering canola to my local elevator. Then I had a chance to talk to a few farmers and you know, you don't know whether you should be selling canola or storing canola.

It's total uncertainty. So much confusion there, which is what we've been hearing from so many people. Let's talk about Alberta's premier, Danielle Smith, because she was doing the rounds, making this case for Alberta energy, going to Washington, going to Mar-a-Lago. I mean, those moves were criticized. But is this slightly less damaging tariff being seen as a win for her? So while she says she's disappointed with Trump's tariff decision overall, Smith is taking at least partial credit for that lower 10%

tariff on Canadian energy. She says it's partially because of her government's advocacy and work from the energy sector to speak with US counterparts and lawmakers. She says that work was pointing out just how much oil the US uses from Canada and how much money it makes from the oil it refines. Now Alberta, Smith says, will continue that diplomacy and work to secure the Alberta border. She continues to call for a border czar and a message we've heard before, Smith says, now is the time to create energy security in Canada and build pipelines east to west, construct multiple LNG terminals on each coast, and to cut down on what she calls federal interference and imposition of anti-resource development laws.

Alright Sam, thank you. You're welcome. That's Sam Sampson in Edmonton. So when it comes to Canada-U.S. relations, the late Prime Minister Pierre Trudeau once famously remarked, living next to you is in some ways like sleeping with an elephant. No matter how friendly or even tempered is the beast, if I can call it that, one is affected by every twitch and grunt. Now it seems those twitches and grunts have become impossible to ignore. So naturally, some Canadians could be thinking, we could use some new bedfellows.

What about the European Union? Freelance reporter John Last found out if that's something Canadians could benefit from. Legally, of course it's legally possible. I mean, what constitutes a European country is left to political decision making. Demetrius Agrioulas is a researcher at the Universidade Libre de Brasile's Institute for European Studies. He says even though Canada is not in Europe, in some ways it has more in common with Europe

than it does with the United States. Canada has certain cultural values with the EU, with regard to human rights, the control of firearms, the abolition of capital punishment. Also Canada has a long history of social policies and a welfare state, which is also important. The EU's governing treaty only specifies that a member be European in some fashion. Aren't Canadians close enough? I think that there are advantages in this potential marriage. Ruben Zaioti is a Europe expert at Dalhousie University. He says there would be some perks

to this deal. Canadian membership would give the EU open access to Canada's vast and strategic resources. In return, Canada would get access to Europe's highly skilled workforce. Perhaps best of all, it could help lessen Canada's reliance on the US and give it a bargaining chip in negotiations. Sounds like a win-win. That's not going to happen. Stephen Blockmans is a senior fellow at the Center for European Studies in Brussels. Europe, he points out, already has a long waiting list. Ten countries, some of which have been waiting for decades to join.

The EU would be a poor substitute for the US anyway. Trading across an ocean is hardly the same as driving across a border. And, lest we forget, Europe is having a hard enough time funding its own continental defense. A realignment doesn't mean a break with the US, right? It cannot mean that for Canada. Still, Canada could strengthen its ties to Europe with new agreements, if it really wants to. But does it? Some Canadian leaders have already been reluctant to challenge Trump. And many Canadian businesses, too, might prefer what he's selling. In the end, it might not be worth the trouble.

Germany, Italy, Austria, Hungary, Finland, the Netherlands, France, all are seeing major victories for Trump-style politicians. All to say, Canada and Europe may have shared values now, but give it a few years and Europe and the U.S. may share more values still. For CBC News, I'm John Last. Officials in Philadelphia say seven people are dead after a plane crashed into a mall Friday night. The Medivac plane was carrying a child patient, her mother, and four crew members, all Mexican

citizens. It came down just 30 seconds after takeoff and exploded on impact. One person on the ground was also killed and at least 19 others injured. Adam Teel is Philadelphia's managing director. This is a very large area with a lot of damage. And we are still working in a number of different ways to assess that damage. We have teams who are going literally house by house,

door to door, and also our license and inspections personnel are inspecting all of those dwellings, all the dwellings in the area, so we can be sure that we don't have other hidden damage. The cause of the crash is still unknown. In southern BC, hundreds of snowplows are ready to hit the road. BC's south coast is bracing for its first major snowfall of the winter season this weekend.

Environment and Climate Change Canada has issued snowfall warnings for the province's interior. It says cold temperatures are expected to last into next week, with temperatures around 5 to 8 degrees below the seasonal average. Quebec's government has introduced a draft law aimed at newcomers to the province. According to officials, Bill 84 is a clear rejection of Canadian multiculturalism. Instead, it proposes a new model inspired by the concept of interculturalism. Sarah Levitt explains. Sarah, first of all, can you explain the motivation here and what exactly

the Quebec government means by interculturalism? So this is first and foremost about Quebec nationalism. The idea that the province is unique given that it's a French-speaking majority. Quebec is alone in Canada in that regard. Many Quebecers feel that the uniqueness is constantly under threat. And in the government's mind, multiculturalism is part of a place's identity, that it's made up of many cultures. Whereas Premier Francois Legault has said, interculturalism notes there is a prevailing culture and that newcomers need to acknowledge and integrate into that. So what does that concretely mean in the case of this

proposed law? Well it's not entirely laid out yet but Immigration Minister Jean-François Robert has said it'll focus on things like French lessons and values that newcomers learn, noting that NGOs doing lessons or teaching those values could potentially lose funding if they aren't complying. Here's what he had to say. We have a common culture, we have a Quebec culture, and so our organization should be sure to promote the Quebec's culture. And organizations should put some efforts to put people together.

We don't want ghettos, we want a society. I think for many people, this draft law calls to mind Bill 21. That was the secularism law that ended up being really controversial. What does the province have to say about that comparison? Yeah, well, you know, throughout his mandates, Premier François Legault and his government have really brought in a number of laws to protect Quebec's language and culture. Bill 21 is the one that is, as you say, the most controversial among other things. It bans public servants from wearing religious

symbols like the hijab on the job. In fact, that law is one that the Supreme Court of Canada is looking into because a number of individuals and groups challenged it in court. This latest proposed law doesn't touch specifically on religion, but it's part and parcel of that government, the government's overarching goal of protecting Quebec. Now, the bill says the province is responsible for fostering the learning of French. But how much support is there for new Canadians who actually do want to do that, to learn French and to better integrate into Québécois culture?

So you know, this is exactly the question that Quebec's opposition parties have highlighted with this proposed law because while immigrants are made to learn French when they arrive, it's actually quite hard to find available lessons. So recently hundreds of French courses have been cancelled due to lack of government funding. Organizations are struggling to provide enough resources to help everybody who needs it. So the opposition has said, well, great. Okay, we agree that those who come here should learn French, should learn about Quebec, but how can they if the services aren't there?

Okay, so that's one reaction. What about any backlash? So there's worry, much like the Bill 21 we were talking about, the secularism law, that this proposed law is another example of anti-immigration, that it hurts Quebec culture instead of helping it. And people who work in integration services

like Veronica Islas say they're worried about the message this law sends. It might sound as though people don't want the same thing, you know, and most people who come, they want exactly the same thing, you know. They want to be part of a bigger project, to be part of a Quebec society. So for Islas and others, the fear is that this proposed law will actually alienate newcomers instead of integrating them. Okay, Sarah, thank you so much. Thank you. CBC's Sarah Levitt in Montreal. As we've been discussing, the Canada-U.S. border has become a source of tension with

the Trump administration. The president himself says a porous border is one justification for his tariffs. Here's some more of what Donald Trump said about that last night. For years and years we've suffered with millions of criminals coming into our country. They come through Mexico and they come through Canada too. A lot of them come through Canada and a lot of fentanyl comes through Canada and China makes the fentanyl. You know, China makes the fentanyl, gives it to Mexico, puts it through Canada. And so all three haven't treated us very well. Now earlier this week, CBC News tagged along with the RCMP in Quebec,

where Donald Trump's spotlight on the northern border and his mass deportation threat loom large. Catherine Tunney reports. It's a bleak, frigid day as RCMP Sergeant Daniel Dubois hits the road, patrolling the Quebec-New York border. The veteran officer is looking for people trying to cross the border illegally, either into or from the U.S. The day's freezing temperatures and howling winds, just part of being a Mountie.

But there's another element he and his team are weathering these days, a political storm. The biggest concern is not knowing. The root of our job is to apply laws, to know what's the next step, to plan ahead for an operation, to do this, to do that, to have an idea how things are going to go. for an operation to do this, to do that, to have an idea how things are going to go. Earlier this week, CBC News shadowed Dubois on a stormy day, waiting for tips to come in and checking known crossing points for any evidence. No, no footprints today. All the while, news alerts would buzz, detailing the latest from Washington. U.S. President Donald Trump's focus on northern border security and his promise of mass deportations

add a layer of stress for the Mounties here. Right now we don't know how things are going to go. So that causes anxiety, you know, for a membership. Dubois parks the car on what is perhaps Canada's most infamous rural street, Roxham Road. During Trump's first term, tens of thousands of asylum seekers crossed here. Now the re-elected president is cracking down even harder on immigration. That has the RCMP preparing for a possible northern surge, this time under updated laws. These days, asylum claimants are turned back to the U.S. unless they can stay undetected for 14 days.

Potentially making the RCMP's job much harder. We're facing a reality that our patrol officers would have to respond anywhere and everywhere in the area. It's pretty wild out there. It's a lot of forest and kind of boggy terrain. Evelyn Bouchard has lived in the area for years. She's concerned the updated Safe Third Country Agreement will drive asylum seekers to take riskier routes to avoid police. There's kind of core humanity at the base of this.

These are human beings. As the afternoon wanes, some relief for Dubois. No one has been spotted attempting to cross today. But with the weather promising to warm, the anxiety grows. Who can plan if it's going to be different tomorrow? These days along the border, uncertainty is the only thing that's certain. Catherine Tunney, CBC News, Hemmingford, Quebec. I just want your extra time and your kiss

Here's a change of pace from all the tariff news. A celebration of Prince. He's one of the people getting a lifetime achievement award at tomorrow's Grammys. If you don't like this baby, find another love, another love It's been nearly nine years since Prince died from a fentanyl overdose, but his musical legacy lives on, says the guitarist from Toronto who was his bandmate and friend. Donna Grantis described some of Prince's musical process in an interview with the CBC's Ian Hanamansing.

And what happened when they were laying down the bed tracks for this 2014 song, Another Love, at around three or four in the morning? And there was space for a big guitar solo at the end. And he asked me, do you want to play the solo now or tomorrow? I said, tomorrow. And he said, okay, do it now. Do you want to play the solo now or tomorrow? I said tomorrow.

And he said, okay, do it now. And then he left to go play ping pong. ["Ping Pong"] We'll leave you with one of the classic songs that solidified Prince's place in music history and helped earn him that Grammy's lifetime achievement. This is When Doves Cry on Your World Tonight. I'm Stephanie Scanderis. Thanks for listening. Love's crying